Meituan Stock Earnings Reports

Key investor takeaways: Meituan delivered revenue of RMB 91.8 billion in Q2 2025 (up 11.7% YoY) with total MAU >600 million and its main app MAU >500 million. The company hit an operational milestone — on‑demand delivery exceeded 150 million orders/day in July — while core user engagement (weekly transacting users) and cross‑business membership adoption continued to strengthen. Profitability was pressured by intensified industry competition: cost of revenue rose 8.1 pp to 66.9% (higher courier incentives and overseas costs), S&M rose to 24.5%, and adjusted net profit fell to RMB 1.5 billion; operating cash flow declined to RMB 4.8 billion. Management is deliberately increasing short‑term investments (marketing, user incentives, courier welfare and overseas/grocery expansion) to defend market leadership and build longer‑term unit economics. Strategic priorities: double‑down on fundamentals (selection, delivery reliability, price), expand grocery/self‑operated Xiaoxiang Supermarket (nearly 1,000 DCs in 20 cities) while exiting underperforming Meituan Select regions, invest in cloud kitchens (target 1,200 over 3 years), scale Keeta overseas (HK, Saudi, Qatar and planned Brazil entry) and grow Meituan Instashopping/instamarts (50k+ instamarts). Capital allocation: prioritize core domestic growth with ROI discipline, retain buyback as a tool but focus cash on business needs. Near term, expect continued fierce competition and Q3 margin pressure; management expects unit economics/profitability to recover once subsidy levels normalize.